Program Operations Manual System (POMS)

A. POLICY - UNITED STATES

For the United States, the agreement applies only to RSDI coverage and Social Security taxes under the RSDHI program (i.e., FICA taxes for employment and SECA taxes for self-employment, including the
Medicare portion). Thus, if an individual is exempt from U.S. Social Security coverage
under this agreement, neither the employee or employer share of the FICA tax nor the
SECA tax, in the case of a self-employed person, has to be paid.

B. POLICY - AUSTRIA

For Austria, the agreement applies to social security coverage and taxes that finance
retirement, survivors and disability benefits and to the taxes that finance Austrian
sickness and accident insurance. Consequently, if an individual is exempt from Austrian
social security coverage as a result of the agreement, no contributions are due under
these programs. However, contributions may still have to be paid for other types of
Austrian benefits such as unemployment and children's allowances.